Tagged: bailout

U.S. Considers Financial Pay Rules

Reports say the Obama administration is mulling an overhaul of compensation practices in the financial services industry, including for companies that did not receive bailout money like hedge funds and private-equity firms.  School of Management Professor Fred Foulkes, director of the Human Resources Policy Institute and an expert on executive compensation, can discuss what this […]

Ford selling shares to avoid bankruptcy

Ford will offer 300 million common shares to shore up cash reserves, avoid a federal bailout, and keep it out of bankruptcy as its Detroit competitors GM and Chrysler struggle to restructure.  School of Management Dean Louis Lataif, a former Ford executive, can offer strategic perspective on the move. Contact Louis Lataif, 617-353-2668, lelataif@bu.edu

Report: GM to build more cars overseas

Despite billions of taxpayer dollars poured into it to help revive the US economy, GM plans to add many of its new automaking jobs overseas under its restructuring. The Washington Post reports that the GM plan looks to double the number of cars it sells in the US that will be built Mexico, China, and South Korea.  School […]

Taxing to deal with “too big to fail” corporations

Law Professor Tamar Frankel, author of “Trust and Honesty: America’s Business Culture at a Crossroad,” says taxation is a reasonable tool to use to control corporations which are being given federal bailout money because they’ve become “too big to fail.” “Many wonder and worry about the mammoth banks and corporations that became ‘too big to […]

Awaiting bank “stress test” results

With the release this week of results of the “stress tests” on the nation’s largest banks, Robert Bench, senior fellow at the School of Law’s Morin Center for Banking and Financial Law and former deputy Comptroller of the Currency, says federal regulators will be tough. “The federal banking agencies have the striped-shirt and the whistle, […]

Chrysler bankruptcy “unfortunate”

School of Management Dean Louis Lataif, a former Ford executive, says the bankruptcy of Chrysler shows it is difficult for the government to impose financial decisions on private enterprises. “It’s unfortunate that Chrysler must go through bankruptcy. It seems clear that debt holders, who themselves must answer to their own investors, refused to take only half […]

TARP fraud: A culture “hostile to law”

With word of federal probes under way into alleged fraud involving banking bailout funds, School of Law Professor Tamar Frankel, an authority on securities law and legal ethics, says those receiving TARP funds should be subject to ongoing examinations. “‘It’s the culture, stupid.’ Law not only limits innovations, it also controls competition on innovative antisocial […]

Dealing with the Merrill Lynch bonuses

School of Law Professor Tamar Frankel, an authority on securities law and legal ethics, says the SEC is in a tough spot reviewing whether bailed-out Bank of America broke the law by not disclosing to shareholders bonuses to executives at Merrill Lynch, which BofA had bought.  She suggests three ways to enforce the law, which could […]

Fed should share bank “stress-test” details

School of Management executive-in-residence Mark T. Williams, a former Federal Reserve bank examiner, says the Fed should be sharing more details with the public about the “stress-testing” being conducted on the nation’s 19 largest financial institutions. “It is understandable that the Fed needs to protect the confidential nature of test results.  But how the tests […]

Bonuses for Fannie Mae, Freddie Mac “nauseous”

School of Management Professor James Post, an expert on corporate governance and business ethics, says the $210 million in retention bonuses for employees of bailed-out Fannie Mae and Freddie Mac are inappropriate under the economic circumstances. “The news of retention bonuses at Fannie and Freddie gives me the same nauseous feeling I felt when looking at […]